Property Protection Trust – Family Home

Overview:

The Property Protection Trust is designed to safeguard the family home, ensuring that each partner's share is protected for their chosen beneficiaries.

The following is an example where the husband passes away first

Key Features:

1. Husband's 50% Share Protection:
   • Upon the husband's death, his 50% share of the family home is placed into a trust for his designated beneficiaries.
   • The wife's 50% share remains separate and is the only portion subject to potential claims.
2. Protection Against Claims:
   • The husband's share is shielded from:
     • Bankruptcy claims against the wife.
     • Care home fee assessments for the wife.
     • Risks of disinheritance due to remarriage of surviving partner, ensuring the beneficiaries' inheritance is secured.

Surviving Partner’s Rights:

• The surviving partner retains a life interest in the property, allowing them to:
  • Continue living in the home.
  • Sell or move properties.
  • Rent out the property for income if desired.
• The trust ensures that the surviving partner's lifestyle is unaffected while providing 100% protection of the deceased partners share.

Protection Against Sideways Disinheritance:

• The Property Protection Trust also safeguards children from "sideways disinheritance," this occurs when a surviving partner re-marries and their new partner then inherits on their death. In situations where the children and the new partner may fall out, the new partner could write a new Will leaving the original beneficiaries out therefore dis-inheriting them from their original inheritance.
• This trust prevents such outcomes, ensuring that the intended beneficiaries inherit as planned.

This structure provides a robust and focused solution for protecting the family home, offering peace of mind for both partners and their beneficiaries.